Saudi Arabia receives four bids for Medina PPP sewage plant

12 Apr 2021
Saudi Arabia receives four bids for Medina PPP sewage plant

Saudi Water Partnership Company (SWPC) has received bids from four groups for the planned Medina 3 independent sewage treatment plant (ISTP)

Saudi Water Partnership Company (SWPC) has received bids from four groups for the planned Medina 3 independent sewage treatment plant (ISTP).

SWPC issued tender documents to six prequalified groups for the 375,000 cubic metre a day (cm/d) project in June 2020.

The following four groups submitted bids for the scheme:

  • Acciona (Spain)/ Tawzea (local) / Tamasuk (local)
  • Aqualia (Spain) / Alfanar (local)/ Al-Khorayef
  • Metito (UAE)/ Mowah (local)/ Nesma (local)
  • Veolia (France)/ Albawani (local)/ HAACO (local)

The winning developer will sign a 25-year sewage treatment agreement (STA) with SWPC. The sewage capacity will be supplied by SWPC. The STA will be supported by a credit support agreement from the Saudi government.

SWPC appointed Japan’s Sumitomo Mitsui Banking Corporation as lead and financial adviser, UK-based Atkins as technical adviser and UK legal firm DLA Piper as legal consultant for the Medina 3 ISTP.

SWPC awarded contracts for Saud Arabia’s first three ISTP projects in 2019, with sewage treatment plants before this date having all been delivered under standard engineering, procurement and construction (EPC) contracts.

The winning team had submitted the lowest tariff of SRhalala 107.9 ($cents2.87) a cubic metre during a competitive bidding process in August. The Taif ISTP will have a treatment capacity of 100,000 cubic metres a day (cm/d), and will be developed operated under a 25-year sewage treatment agreement.

Energy & Utilities reported in November 2020 that the Cobra Instalaciones y Servicios/ Tawzea consortium had reached financial close for the planned Taif ISTP.

In February 2019, the client signed contracts with a consortium comprising local firms Power & Water Utility Company for Jubail, Al-Amwal al-Khaleejiah and France’s Veolia to develop the Jeddah Airport 2 ISTP. The Jeddah Airport 2 plant will have a capacity of 500,000 cubic metres a day (cm/d).

India/US-based Synergy was the financial adviser to the winning consortium.

In September 2020, the Marafiq/ Veolia consortium achieved financial close for the $280m Jeddah Airport 2 ISTP.

In January 2019, a consortium of UAE’s Metito, the local Mowah and Egypt’s Orascom was appointed to develop the Dammam West, the kingdom’s first ISTP project.

The Dammam West plant, located in the eastern province of Saudi Arabia, will have an initial capacity of 200,000 cm/d, with a design that will allow expansion up to 350,000 cm/d in the future.

The $245m Dammam West ISTP project reached financial close in June 2020.

 

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